THE INTEROCEANIC CANAL PROBLEM 81 



The opening of the year 1896 found the Maritime Canal 

 \Company almost exhausted in its struggle against adverse 

 jfate. Its adjunct, the Canal Company, as already noted, had 

 foundered in the financial storm of 1893, leaving the results 

 of its labors in Nicaragua exposed to the destructive influ- 

 ences of merciless floods and to the devouring growth of 

 tropical vegetation. A new construction company had been 

 -organized the previous year (March, 1895), and chartered in 

 Vermont, to resume where the old canal company left off. 

 Unfortunately, its available assets were quite dissipated in 

 liquidating the debts of the old company, and none were left 

 with which to dig canals. All the efforts of the parent com- 

 pany to obtain funds had failed ; every attempt to secure 

 governmental aid had failed as well ; and six of the ten years 

 within which the canal should be completed, under its con- 

 cession from Nicaragua, had slipped away. The Ludlow 

 Commission had reported that further investigation into the 

 technical features of the undertaking was necessary, and it 

 was therefore quite likely that Congress would do nothing 

 toward rescuing the company until such final investigation 

 could be made. The outlook for the company was gloomy. 



Notwithstanding these unfavorable conditions, the friends 

 of the company in the Senate and House continued to exert 

 themselves in its behalf. With recommendations for imme- 

 diate action, the House Interstate and Foreign Commerce 

 Committee reported a bill calling for sucli national aid to the 

 enterprise as might seem requisite to enable the company 

 to obtain funds necessary to complete the work in Nicaragua 

 already commenced. The measure contemplated the practi- 

 cal conversion of the company into a governmental concern. 

 The entire capital (a new issue of bonds being authorized) 

 was to be retained by the United States, save the sum of 

 87,000,000, which was to be left in the hands of the com-/ 

 pany's original stockholders, to reimburse them for fundsy 

 actually expended in Nicaragua. This bill passed through 

 the various stages of committee-room debate, and finally took 

 its place upon the Senate calendar, though too late for action 

 during that term. 



